Banking Rules for Cheques: There are many ways to transfer money in the banking sector these days. Most of the people use online payment like net banking, UPI payment etc. But even today, paying by check remains one of the most popular options. Have you ever paid by check?
Are you aware of some technical terms of check payment? A person who issues a check to another person is called a ‘drawer’. Also the person in whose name the check is being issued is called the payee. So let us tell you about the types of checks-
- One stale what is check ,
Steel means old check which is not cashed for 3 months after issue is called old cheque. It is important to note that the check must be cashed within 3 months of its issuance. After that you cannot cache it. After a period of three months, the check is treated as an expiry check and after that it is not valid. As per RBI rules, such checks cannot be encashed after the expiry of 3 months.
- what is post dated check ,
A post dated check is a check that the payee mentions the date of fire before it is issued. For example, you have to pay someone for the future and you have issued him a check for any date in the next three months. This type of check is better for those who do not have money in their account today but have money in the next few days. Mention the date on the check as per the amount in the account. After that, the payee can withdraw money by placing a check in the bank on that date.
- One what is pre dated check ,
A pre-dated check is a check that is received at the bank for payment within 3 months from the date of issue. The drawer can encash the check at his convenience. However, keep in mind that the check should be cashed within three months of issuance, otherwise you may face difficulties later.